Binjiang District has introduced its third “1+X” industry support policy to maintain its competitive edge.
“1” refers to a comprehensive industry-support policy system, which makes clear the targets, basic principles and supportive policies.
“X” refers to 11 concrete supporting policies, covering a wide range of areas including talent, development of enterprises with leading positions in industries, small and medium-sized enterprises with high growth potential, innovation in scientific and technological enterprises, development of cultural and innovative industries, intellectual property protection and mergers and acquisitions.
More than 15 billion yuan (US$2.34 billion) will be allocated to support the development of industries in the next three years, according to the new policy. The new policy adopts and integrates the core of former policies covering headquarters, MICE (meetings, incentives, conferences and exhibitions), and financial service centers.
Binjiang is promoting several new policies, covering talent, mergers and acquisition and financing for scientific and technological enterprises.
Since 2011, Binjiang has introduced two rounds of “1+X” industry-support policy system. The industry policy system positioned Binjiang at the forefront of the development in China.
In 2017, enterprises in Binjiang District received a total of 3.15 billion yuan in industry-support funds, which is far ahead of other districts and counties in Zhejiang Province.
Binjiang is renowned for having a complete industry policy with the characteristics of “accurate, fast and strong” support from the district government.
In 2004, the Hangzhou High-tech Zone implemented a regulation stipulating that at least 15 percent of expenditure should go to industry support funds to support the development of high and new technologies as well as innovation by small and medium enterprises.
The high-tech zone, established in 1990, is one of the first batch of state-level hi-tech industrial zones approved by the State Council. Binjiang District was established on the south bank of the Qiantang River on July 8, 1997.
The management systems of the two were combined in June 2002, and the “two entities but one leadership” system was implemented.
In 2017, Binjiang District celebrated its 20 anniversary and the 15th anniversary of the creative management system.
The gross domestic product of Binjiang District reached 108.9 billion yuan in 2017 and fiscal income reached 28.7 billion yuan. The district has attracted 239 top professionals, 41 companies listed on the main board and 104 companies listed on the over-the-counter market.
There are more than 700 high-and- new-technology companies in Binjiang, making it a hot spot for industries, talented professionals and innovation.
The new “1+X” industry-support policy system has six advances over the previous two rounds.
First, as professionals are at the center of scientific innovation, the district introduced “30 new talent policies” covering talent introduction, innovation, business startups and life aspects.
Second, the district government will give priority to the development of strategic new industries and high-and-new-technology industries, including IT, and healthcare service, culture, innovation, energy-saving, environmental protection, advanced equipment manufacturing, artificial intelligence, new energy and new materials.
Third, the government is exploring establishing a complete incubation system with the coordination of overseas and domestic incubators and industrial zones. Binjiang encourages incubators at the national, provincial and municipal levels to set up in the district, and the government will provide financial aid for them.
Fourth, Binjiang will support the financing of enterprises by joining hands with the “Phoenix Action” of provincial and municipal governments.
Listed companies will be able to get land for development and every listed company will be able to have independent real estate in Binjiang District. And in 2025 Binjiang plans to have 100 companies listed on the main board.
Fifth, Binjiang will set up a scientific and technological innovation support fund. It encourages scientific and technological enterprises in the district to seek investment from venture capital institutions, loans from banks and corporate bonds from securities market.
Sixth, the district will attract leading international enterprises and professionals to accelerate research and development in high-tech areas.
Binjiang encourages high-tech companies, universities and institutions to set up R&D centers, and the district supports the host of influential conventions and forums in Binjiang.
The district will make all efforts to establish a global innovation center on Internet-plus and capitalize on the opportunities generated by the “Belt and Road” Initiative.
In addition, Binjiang will allocate at least 500 million yuan annually to the development of enterprises with leading positions in industries and arrange budgets of no less than 200 million yuan each year to support the development of SMEs with high growth.
And more than 600 million yuan in annual spending will be allocated to encourage esteemed domestic and overseas enterprises to invest and develop in Binjiang, especially for key technology projects or innovation projects in the areas of biological medicine and integrated circuitry.